Happy New Week Surfers.
No surprises that EUR/USD lost more ground on Friday, given the pullback that was delivered on Thursday and the break of our Long Term Support #1. Price Action (PA) failed to sustain momentum below 1.2800 however and we begin the week with PA pulling back towards another retest of our Trendline.
The Stock Market cliche “ sell in May & go away” seems befitting USD cross currencies and EUR/USD is certainly following that adage. I see no sign of that trend reversing and our Pivots agree, maintaining strong Bearish formation. It’s tough to miss a Bearish continuation Flag #2 forming on smaller time frames and not unreasonable to expect some action at the confluence of this, with our week old Resistance Trendline #3. In the Bulls corner, is an emerging Ascending Triangle #4. Tough to enter Long though but I will watch the top side of this.
The Day Ahead
PA is currently re-testing an Intraday Support Trendline #5 from Friday which may provide another confluence factor so this is the day’s #1 Hotspot – I will look for Short entries right there.
High Impact News
Have a Magnificent Monday